|Bid||0.00 x 900|
|Ask||67.07 x 1300|
|Day's Range||64.17 - 66.50|
|52 Week Range||59.94 - 107.34|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||2,267.93|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
SmileDirectClub slid 28% on its first day of trading, adding to the list of disappointing IPOs. Yahoo Finance’s Brian Sozzi and Alexis Christoforous discuss what’s next for the IPO market with EY's America's IPO Expert Jackie Kelley.
Zoom Video Communications (ZM) closed at $66.08 in the latest trading session, marking a -1.42% move from the prior day.
Workday Inc. shares are off more than 11% in Wednesday morning trading and pacing the declining software sector after the company held its user conference and analyst day. Several analysts flagged the company's commentary on its human-capital management product, which Workday expects to end the year with 20% growth, marking a slowdown. "Financials will need to continue to grow at healthy rates to offset this," wrote Jefferies analyst Brent Thill, though he said the attachment rate of financials to the core product is relatively low, suggesting opportunity. While Workday also announced some new products, Macquarie analyst Sarah Hindlian questioned the revenue potential for some of them. "For example, blockchain-enabled Workday Credentials allows verification of credentials such as employment and educational history," she wrote. "We think this is likely a limited market opportunity." Another issue for Workday is that its chief executive commented that the company has "definitely seen some delays" in deal activity, but Workday doesn't expect these to impact the business or result in cancellations. Other software stocks are getting hit in Wednesday trading as well, including Slack Technologies Inc. , which was the subject of a price-target cut at Morgan Stanley, and Adobe Systems Inc. , which received a Citi Research downgrade. Shares of Okta Inc. , Splunk Inc. , Zoom Video Communications Inc. , and Atlassian Corp. PLC are also down. The iShares Expanded Tech-Software ETF is off 2.3%, while the S&P 500 has lost 0.1%.
(Bloomberg) -- Wall Street’s tepid reception to highly-anticipated IPOs from Peloton Interactive Inc. and SmileDirectClub Inc. shows rising anxiety that a recession could be on the horizon, analysts say.The struggles for the home exercise company, the dental aligner maker, and ride-hailing peers Lyft Inc. and Uber Technologies Inc. may give a glimpse into how investors are valuing their services as well as what a global slowdown could mean for the consumer-dependent stocks.“The weakest link is retail. Companies that sell to –- or stocks that are bought by -– individual retail buyers will feel the effects soonest and most,” said Rett Wallace, CEO of Triton Research Inc.Weakness in these mega-IPOs has partially been driven by a rotation toward more defensive business models, MKM analyst Rohit Kulkarni said in a telephone interview. While Uber and Lyft could benefit from a spike in part-time drivers, demand for their services and Peloton’s subscription numbers may take a hit if consumers have less money to spend, he said.“Consumer companies such as Uber, Lyft and Peloton will probably feel a more near-term impact of any potential slowdown in the macroeconomic space,” Kulkarni said. Traders could shun their monthly subscriptions or pay-as-you-go models, if slowing revenue lengthens their path to profitability.The S&P 500’s brief climb above 3,000 for the first time in three weeks provided a lift for some of the beaten-down companies on Tuesday. Peloton had its best session, rising 9.2% off a record low, while SmileDirectClub bounced 6.3% to trade back above $10. But both stocks are still trading well below their offering prices.Both had also set the terms for their IPOs in September, shortly after the spread between 3- and 10-year Treasuries bottomed out in August, indicating a higher probability of a recession. According to data compiled by Bloomberg, the probability of a recession had then peaked at nearly 40%.SmileDirectClub’s more than 50% decline from its September offering has placed it among the year’s worst performers. An analyst who follows the company closely said in an email that he is impressed with its business model but acknowledged that “it certainly will have exposure to an economic downturn given the discretionary nature of orthodontics.”Some of the best-performing IPOs show the inverse. Application software companies have seen their stock prices surge as investors favored firms that face businesses instead of individuals. Zoom Video Communications Inc. and CrowdStrike Holdings Inc. are a few that come to mind when surveying the landscape of red-hot companies whose business models might be more sustainable.While Beyond Meat Inc. remains the year’s best performing IPO, with a more than 385% gain since going public in May, it has cooled off from its summer sizzle. The stock has lost almost half its value from a July 26 peak, shedding almost $7 billion in value.Now, the challenge for investors, according to Kulkarni, is valuing large, unprofitable companies at just the time when the global economy may be headed for a slowdown, and maybe even recession.To contact the reporters on this story: Bailey Lipschultz in New York at firstname.lastname@example.org;Drew Singer in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Jennifer Bissell-Linsk, Scott SchnipperFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares of Pinterest Inc. sank 4.5% toward a 4 1/2-month low in morning trading Tuesday, as the "lock-up period" following the online bulletin-board company's initial public offering has expired. Despite the selloff, the stock was still trading 30% above the $19 IPO price. The company went public on April 18, and the company said executive officers, directors and holders of "substantially all of our common stock" had entered into "lock-up" agreements to net sell any stock for 180 days. Meanwhile, Zoom Video Communications Inc. shares shed 2.0%, as the videoconferencing company also went public 180 days ago on April 18. Pinterest's stock has slipped 7.2% over the past three months and Zoom Video shares have tumbled 30.4%, while the Renaissance IPO ETF has lost 13.2% and the S&P 500 has eased 0.6%.
Zoom Video Communications has been on a bit of a cold streak lately, but there might be light at the end of the tunnel for this overlooked stock.
Is Zoom Video Communications, Inc. (NASDAQ:ZM) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise […]
Zoom Video is trading significantly higher than 2019's other IPO debutants. Zoom stock had an offer price of $36 and is trading at $73.52—104% higher.
Facebook said its Workplace platform for businesses collaboration, with 3 million paid users, will now work on its Portal video chat devices, which caused Zoom Video stock to fall.
Facebook's Portal video chat devices will now handle the company's Workplace service for businesses, Facebook announced at its Flow conference.
Stephen Curry, who formally announced his investment arm SC30 at TechCrunch Disrupt last week, is not aligning himself with CBD whatsoever.
It's been about four years since Square (NYSE:SQ) came public. At the time of the deal, there was mostly a chilly reception from investors. Square stock priced at $9, which was below the range of $11 and $13. The valuation was actually lower than the company's prior round of venture funding.Source: Shutterstock Interestingly, recently SQ stock is undergoing a similar period of skepticism (which, by the way, has come after a powerful bull move for the past couple years). During the past few months, the shares have gone from $82 to $59. The result is that the year-to-date return on Square stock is only about 7%. In fact, for the past 12 months, the shares have sustained a 39% loss.It's true that many tech stocks, especially the high-fliers, have come under pressure as well. Just look at the major drops in companies like Zoom Video Communications (NASDAQ:ZM) and Okta (NASDAQ:OKTA).InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut hey, when it comes to tech stocks, there are periodic swoons. Yet they have been temporary - and yes, good buying opportunities. * 7 Important IPO Stocks to Watch for the Long Run So might this mean that SQ stock is a good opportunity right now? Well, there's little doubt that the company has a solid platform and is a leader in the fast-growing payments market.All this has come from a fairly simple application, launched in 2009, that involved a credit card reader that connected to an Apple (NASDAQ:AAPL) smartphone or Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) Android device.From there, CEO Jack Dorsey was aggressive in expanding the platform into a myriad of categories like payroll, gift cards, loyalty programs, marketing services, eCommerce, business loans and so on. The result is that Square has become a very sticky service.Although, the move into loans may be having the most impact. "The company is getting a piece of the origination fee, which is pure profit," said Chris Ligan, who is the VP of Acquisitions for point-of-sale credit card processor Auric. In all, SQ has loaned customers about $5 billion. The Market and Square StockThe market opportunity for payments is enormous - estimated at over $100 trillion on a global basis. But this means there is much competition coming into the segment. Of course, there are startups popping up as the venture capital markets are awash with huge amounts of money.But even traditional financial institutions are leveraging their own platforms and customer bases to get a piece of the opportunity. Consider that Bank of America (NYSE:BAC), BB&T (NYSE:BBT), Capital One (NYSE:COF), JPMorgan (NYSE:JPM), PNC Bank (NYSE:PNC), US Bank (NYSE:USB) and Wells Fargo (NYSE:WFC) are the backers of a payments app, called Zelle, which has been getting lots of traction."What ends up happening is as concepts get commoditized, it is tough to remain relevant," said Zafin executive vice president of global partner growth and sales strategy, Meenaz Sunderji. Bottom Line on Square StockEven with the drop-off in the share price, the valuation on SQ stock is still far from cheap. Consider that the forward price-to-earnings multiple is about 54X. In other words, Wall Street is still expecting quite a bit of growth on the top line.But this could be tough to maintain. Besides the emerging competition and the risks of commoditization, SQ also is vulnerable to a slowdown in the U.S. economy (and yes, the recent data does look ominous). Let's face it, the company's customer base is primarily made up of small businesses, and they usually get hit the hardest when the economy goes into recession.So in light of all this, it's probably best to avoid Square stock for now.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Important IPO Stocks to Watch for the Long Run * 7 High Volatility Stocks to Buy as the Market Rebounds * 7 Dow Jones Industrial Average Stocks to Sell The post Things Bleak for Square Stock in a Slowing Economy appeared first on InvestorPlace.
It's been a rough year for the IPO market. While most promising unicorns have sputtered out of the gate, one analyst has a reason to be optimistic going forward.
One of newly public firms’ favorite tools to boost executives’ control may also be a long-term liability, according to Goldman Sachs.
By John Jannarone Peloton Interactive, Inc. expects its remarkably low monthly churn rates to remain subdued as it encourages active use and for marketing expenses to remain manageable as word-of-mouth recommendations lead to new memberships, according to Chief Financial Officer Jill Woodworth. “The number we are most focused on is member retention,” Ms. Woodworth told […]
Peloton Interactive, Inc. Has Monthly Subscriber Churn of Well Under 1% By John Jannarone Peloton Interactive, Inc. looks much fitter than many of this year’s IPOs. Does the fitness-media company have what it takes for the long haul after going public? 2019 has seen dozens of fast-growing companies go public, with the likes of Lyft, […]
Now that Adam Neumann has relinquished his role as CEO of WeWork parent We Co., investors and employees should expect to see costs being slashed and non-core projects abandoned - just as the likes of Lyft, Inc. and Uber Technologies, Inc. have witnessed. That's according to IPO Edge Editor-in-Chief John Jannarone, who spoke to Cheddar […]
(Bloomberg Opinion) -- Many of us have been fixated on WeWork’s struggle to go public and the disastrous post-IPO stock performance of high-profile startups Uber Technologies Inc. and Lyft Inc. But as has often been true in the last few years, the tale is different for the unglamorous tech companies that are running circles around their cool peers.The latest example is Datadog Inc., which helps companies monitor the health of their apps and computing infrastructure; it sold its first batch of public stock late Wednesday. If you fell asleep reading the description, let me wake you up by saying that the company’s most recent pre-IPO investors(1) have a nearly 1,100% gain on their shares in less than four years,(2)according to figures from EquityZen, a marketplace for private stock sales. The earliest Datadog stock buyers from 2011 have a nearly 50,000% gain.In a non-systematic look at more than a dozen other tech companies that have gone public in the past couple of years, the stock gain for Datadog’s pre-IPO investors is at or near the top of the leader board. Repeatedly, the less-buzzy startups like Datadog that sell cloud-subscription software to businesses have been the ones that deliver the goods for early backers. There have been exceptions, but companies like Zoom Video Communications Inc. and Slack Technologies Inc. — the coolest of the Zzzz crowd — have tended to produce strong returns for pre-IPO investors, and their public shares have typically done well, too.Investors, both public and private, love these software-as-a-service companies. Generally their technology is better than anything that came before — if there was an old-guard technology with similar functions — and once businesses use the software and stitch it together with email, calendars, information databases and other corporate systems, it can be tough to ditch. If they’re managed properly, these business software companies can grow fast and predictably.Among the tech companies that have gone public on U.S. stock exchanges since the beginning of 2018, nine of the top 10 by stock gains from their IPO price are software companies that sell to businesses, according to data compiled by Bloomberg. (No. 1 is Zscaler Inc., whose share price has more than tripled since its March 2018 IPO, despite a recent drop.)What are the lessons here? Well, not surprisingly, it may be that the consumer-oriented tech companies with lots of attention as startups may be great companies but not necessarily great investments if the hype leads to overvaluation. That’s particularly true — as in the cases of Uber, Lyft and WeWork — when public company investors are far more dubious than private investors about companies with unproven business models and unsteady financial metrics. The other lesson may be that you’re in luck if you founded a company in a sector like business software that, at least for now, is the apple of investors’ eyes. I have my doubts about how long these software-as-a-service companies can stay viable. When there is an economic downturn and companies take a hard look at what they’re spending on technology, there are going to be software bills they can live without. That swings the advantage to the big software supermarkets like Oracle, Microsoft and Amazon, which can offer companies discounts on a range of technologies. Some young business software companies are also spending big to grow in a way that may not be sustainable, and their corners of the market may not be as big as optimists expect. These young cloud software companies are also priced for growth to the point where they are vulnerable to any hiccup in customer acquisition numbers or revenue gains. That has happened recently, when companies like Zscaler, Alteryx Inc., PagerDuty Inc., CrowdStrike Holdings Inc. and New Relic Inc. reported wobbly financial results, changes in management or were just infected by worries from other companies in their sector. Still, Datadog shows the benefit of being the right kind of business at the right time. Bloomberg News reported Wednesday that Cisco Systems Inc. approached Datadog recently with a takeover offer significantly higher than the $7 billion valuation it had been shooting for in an IPO. (As of Thursday’s early stock market trades, Datadog is valued at about $11 billion, excluding the value of shares held by employees and others.)Datadog was apparently confident enough in its prospects to turn that down and opt to go public. The uncool companies truly are that cool.A version of this column originally appeared in Bloomberg’s Fully Charged technology newsletter. You can sign up here.(1) Those investors include Iconiq Capital, the investment fund that has managed money forMark Zuckerberg of Facebook and other affluent people and institutions in Silicon Valley and beyond. Other stock buyers included Index Ventures, OpenView Ventures, Amplify Partners and Contour Ventures, Datadog announced in early 2016.(2) I will say that it's unusual for tech startups these days to go public without selling stock or doing other cash collections in the four years before an IPO. Some startups can't go four weeks without needing fresh cash.To contact the author of this story: Shira Ovide at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shira Ovide is a Bloomberg Opinion columnist covering technology. She previously was a reporter for the Wall Street Journal.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.